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The world needs to stop worrying about blockchain, regulate it and let it fly

  • Blockchain is creeping into more industries, as the biggest names in technology contemplate or adopt it. But for the industry to take off, governments need to establish regulatory frameworks and stakeholders need to build up a talent pool

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A technician inspects bitcoin mining machines at a cryptocurrency farming operation, Bitfarms, in Quebec. Blockchain is the decentralised database technology that underpins bitcoin and other digital currencies. Photo: AFP

It was not so long ago that the internet was considered the pinnacle of technology, a network that encompassed far-reaching corners of the globe and demarcated a new world from the old. Over time, technologies that fundamentally change the way people work, operate and engage with each other have emerged – and we continue to make great strides towards a future enabled by technology and limited only by imagination.

Underpinning the radical changes, these technologies have in common the willingness to rethink traditional models, challenge existing frontiers and solve problems we didn’t even realise we had. As we ponder the progress of this technological road map, it is prudent to consider not only the past but to look to the future – where blockchain, the decentralised and immutable digital ledger, beckons.

While blockchain is most frequently associated with its controversial cousin – the cryptocurrency – the technology’s potential to shape the path for future generations should not be pushed aside. Blockchain has slowly crept into conversations in boardrooms, at policy meetings and around water coolers.

With KPMG reporting that 41 per cent of technology leaders favour the implementation of blockchain and the International Data Corporation estimating that spending on blockchain will grow from US$1.5 billion last year to US$2.9 billion this year, the industry has started to shift from exploration to adoption.

It is clear that the technology continues to reach industries far and wide: retail giants such as Carrefour are digitising supply chains, Facebook is publicly contemplating a “distributed” or decentralised login system, and the technology will enter the mainstream with tech giant Samsung’s announcement of blockchain partners for its flagship cellphone.
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